- Ethereum transaction fees have significantly increased over the past week as blockchain’s on-chain activity experiences a broader resurgence, Coinbase reports.
- This activity spike is not driven by a single factor; various elements such as increased decentralized exchange volumes and higher ether transfer volumes are contributing.
- “The average gas price from September 16 to September 26 has surged 498% above the preceding 30-day average,” report Coinbase analysts, David Duong and David Han.
Discover the latest surge in Ethereum transaction fees and its underlying factors in our comprehensive analysis.
Ethereum’s Transaction Fees Surge Amidst Increased On-Chain Activity
Recent data from Coinbase highlights a significant rise in Ethereum’s transaction fees, correlating with heightened on-chain activities. The average gas price over the past ten days soared by 498% compared to the previous 30-day average, now costing $1.69 per transaction, up from $0.09. Multiple factors, including a rise in decentralized exchange volumes by 9% week-on-week and a 17% increase in ether transfer volumes, contribute to this uptick.
Technical Indicators Signal Potential Bullish Momentum
According to analysts at Kraken, Ethereum’s technical charts indicate a potential bullish shift. The cryptocurrency has broken above its Relative Strength Index (RSI) downtrend line from its multi-year high in March, suggesting a change in near-term momentum. Despite this positive indication, Ethereum remains below its 200-day Exponential Moving Average (EMA) at $2,882, which continues to be a crucial resistance level for confirming a long-term trend reversal.
Renewed Optimism in the Ether Derivatives Market
The derivatives market also reflects growing bullish sentiment. CryptoQuant’s Head of Research, Julio Moreno, notes a positive shift in the futures funding rate’s 30-day moving average, which indicates traders’ willingness to open long positions, typically associated with a bullish outlook. Although this alone doesn’t guarantee a sustained price increase, it is a promising sign of market sentiment. Moreover, Ethereum’s open interest-weighted funding rate has remained positive since the Federal Reserve’s rate cut on September 18, standing at 0.0061%.
Conclusion
Ethereum’s recent surge in transaction fees and the positive shifts in its technical charts and derivatives market indicate a potentially bullish future. However, significant resistance levels still exist, particularly the 200-day EMA, which must be overcome to confirm a long-term bullish trend. Investors should monitor these indicators and market trends closely to make informed decisions.
